I heard a trader on youtube comment about paying 50% income taxes. Is it that high everywhere? (I live in Canada.) How do daytraders even make a living if they have to pay such a high tax rate?
Worry about making a profit first. In most jurisdictions you've got to make it over that hurdle before you pay any taxes, and most don't. In the U.S. you're taxed at ordinary income rates, less if you trade futures. Much less than 50%, same as any other earned income so no different than having a regular salaried job from a tax perspective.
Being Profitable is also chance of your work. Different Countries are having different rules for trading.
I just didn't understand how this guy got 50% income tax who was a reputable youtuber/trader so I doubt he was lying. The tax bracket for the US only goes as high as 39.6% for making over 418k. He prolly was making near or more than this amount. Edit: Now that I think of it perhaps he wasn't living in the U.S and someplace where the income tax went as high as 50%.
State taxes. In Oregon, the 9% state bracket kicks in at just $8,500. So if he's 39.6% federal + 9.9% state (for Oregon, California, New York, or other high tax state), then the Obama Net Investment tax of 3.8% that's already over 50% before even considering property taxes, social security, gas taxes or any other sales taxes if applicable. Of course, a trader doesn't have to live in a high tax state so that's one tax that can be saved.
It really depends on where you live and what you get for the taxes you are paying. I live in Belgium and i pay high taxes (somewhere between 40%-50%), maybe a little bit high, on the other hand we have excellent healthcare, education is almost free, we have good unemployment benefits, nice pension, decent public transport (and cheaper then in our neighbor countries), child support, ...
In the UK use a SpreadBetting account and therefore ZERO Tax Classed as gambling and gambling isn't taxable